All cargo owners advised to register and establish payment methods well before July 23 launch to avoid delaying cargo
PierPASS Inc. strongly urges all cargo owners and other parties in the logistics chain who use the Ports of Los Angeles and Long Beach to immediately register for OffPeak and set up their payment methods.
Beginning July 23, most cargo will not be allowed to exit terminals in the two ports by road during peak hours unless the Traffic Mitigation Fee has been paid. The cargo owner (the consignee or shipper) is responsible for payment of the fee, not the trucking company or other carrier. In order to pay the fee, a cargo owner must be registered with PierPASS.
“It is important to understand that registration isn’t just for those companies that intend to use the new night and weekend shifts,” said Bruce Wargo, President and CEO of PierPASS. “Because the Traffic Mitigation Fee must be paid on cargo moving during peak hours, anyone moving cargo through the ports should be registered.”
Payment methods should be established well before July 23
PierPASS urged cargo owners to set up their payment methods well in advance of July 23. Companies that intend to apply for credit should do so immediately. Credit will be granted only to companies meeting PierPASS credit requirements, including creditworthiness standards based on Dun & Bradstreet data, and a volume requirement for moving more than 500 containers per year through the two ports.
The Traffic Mitigation Fee can also be paid by credit card, debit card or electronic check payment. Payments through these services can be made beginning July 16. All payments must be made electronically by registered users; payments cannot be made at the terminal gates.
Marine terminal operators at the Los Angeles and Long Beach ports created PierPASS in 2004 in response to demands from political leaders, community leaders and the shipping industry to shift cargo movement out of commuter traffic. By providing a financial incentive for cargo operations on nights and weekends, the OffPeak program aims to reduce daytime truck trips and improve air quality.
Beginning July 23, all international container terminals at the Los Angeles and Long Beach ports will start OffPeak shifts on nights and weekends. From that date, a Traffic Mitigation Fee will be required for cargo movement through the ports during peak hours (Monday through Friday, 3:00 a.m. to 6:00 p.m.), with certain exceptions.
The fee has been set at $40 per teu, or $80 for all containers larger than a 20-foot unit. The fee will help fund five new OffPeak shifts per week (Monday through Thursday from 6:00 p.m. to 3:00 a.m. and Saturday from 8:00 a.m. to 6:00 p.m.)
Registration surges above 2,200
Registration began on May 23. Since late April, PierPASS has conducted an intensive outreach effort to reach all affected parties and urge all cargo owners to register. As of June 28, more than 2,200 companies had registered.
Users of the ports (such as cargo owners, brokers, truckers and logistics companies) can register for OffPeak through a link on the PierPASS website, www.pierpass.org. Registration is free, and is open to any company or person.
Even companies that are not responsible for payment should register. For example, registration will allow a trucking company to check whether the fee has been paid for a particular container before sending a driver to pick it up.
Cargo owners using store-door delivery services must register and pay fee
The cargo owner ’ specifically, the consignee or shipper identified on the ocean bill of lading ’ is responsible for paying the Traffic Mitigation Fee. Cargo owners are responsible for paying the fee even if they use store-door delivery service from carriers.
Detailed information on the Traffic Mitigation Fee (including who must pay it, when it must be paid, payment methods and credit account information) is also available on the PierPASS website.